18/09/2024
So Albo was going to be pro-business... Hawke like, or even with shades of Howard.
Albo's government has implemented policies that most sectors of the Australian economy, particularly small businesses, that are extremely damaging. The rising costs of energy, labor, and construction materials, combined with inflation and higher interest rates, have made it challenging for businesses to operate profitably.
Business Struggles and Insolvencies
Insolvency data shows a significant increase in the number of businesses going into administration. From July 2023 to May 2024, 8,932 firms entered external administration, a stark rise from 3,901 during the same period in 2022. The construction sector, in particular, has been hit hardest, with 2,643 construction firms going under by May 2024—a 140% increase compared to 2022. Rising material costs (up 30-40%) and declining buyer demand are pushing many builders into insolvency, especially those locked into fixed-price contracts( ASIC Home | ASIC )(MacroBusiness).
Key Concerns Raised by Businesses
Rising Costs: Power prices and operating expenses have surged, especially for small businesses, many of which report struggling to pay energy bills that have risen significantly. Albanese's government provided limited relief—$325 rebates for small businesses—though critics argue this is insufficient to address broader financial pressures(Mirage News).
Policy Impact on Construction and Housing: The government's push for large infrastructure projects is straining labor resources, which has increased competition for workers and driven up wages, further hurting smaller businesses, especially in construction. Additionally, the ambitious housing target of 1.2 million homes is seen as unrealistic, given the rising costs and the slowdown in new home approvals(MacroBusiness).
Renewable energy would have to be the biggest environmental con in Australia. Not only has it jacked up the price of electricity, it is making the supply unreliable and comes with huge environmental damage. The opportunity cost of alternative infrastructure projects is monumental because of the requirement to overbuild power generation relying on intermittent wind and sunshine.
Economic Management Criticism: Albanese's economic policies, including industrial relations reforms and support for wage increases, have been criticized for placing additional burdens on businesses. Critics argue that these measures contribute to inflationary pressures, further damaging economic stability(Mirage News).
Conclusion
Albanese's policies are perceived as contributing to a contracting business environment, with many sectors, especially construction, facing a surge in bankruptcies. High operational costs and inflation, combined with insufficient policy support, are seen as putting considerable strain on Australian businesses and households.
Bring on the alternative government without, Labor the Greens and Greens by a different name.
